The total fuel taxes will be reduced next year by around NOK 2.2 billion, the government claims. – Reduced fuel taxes will make everyday life a little easier for households and businesses, and will mean a lot for the construction industry, explained Finance Minister Trygve Slagsvold Vedum. The law on cheaper pump prices nevertheless receives a lukewarm reception in the car industry. Because other tax changes go the other way. Below is an overview of the changes that come into effect in the New Year, and which will affect your personal finances. In 2023, the total income to the state is calculated at NOK 2,875 billion, and total expenditure at NOK 1,748 billion. In other words: The government believes that the state as a whole will have a surplus of NOK 1,415 billion next year. How much will the cars cost From 1 January 2023, VAT will be introduced on electric cars for the part of the purchase price that exceeds NOK 500,000. A new, more expensive weight component in the entry fee will apply to all passenger cars, including electric cars. The weight allowance in the one-off tax for plug-in hybrid cars will be reduced from 15 to 10 per cent. The re-registration fee for electric cars will be adjusted to the same level as cars with a combustion engine. The discount for electric cars in company car taxation will be cancelled. Electric cars are thus put on an equal footing with traditional cars in company car taxation. New employment and social security taxes From 1 January 2023, there will be an additional employer’s tax of 5 per cent for salary income over NOK 750,000. The wealth tax rate in step 1 (between NOK 1.7 and 20 million) will be increased by 0.05 percentage points. The valuation of shares and commercial property will increase from 75 per cent to 80 per cent. The valuation also increases for primary residences with a high value, so that the valuation is 70 per cent for the part of the residence value that exceeds NOK 10 million. New rates for social security tax. The free card limit will be increased from NOK 65,000 to NOK 70,000. The maximum pension tax credit will be reduced from NOK 33,400 to NOK 32,825. The upper limit for minimum deductions from salary/social security will be reduced from NOK 109,950 to NOK 104,450. The upper limit for the minimum pension deduction will be reduced from NOK 90,800 to NOK 86,250. Increased climate taxes In 2023, the taxes on non-quota emissions of greenhouse gases will be increased by 21 per cent. The fees will be NOK 952 per tonne of CO₂ in 2023, in line with the announced escalation towards 2030. The increase also applies to the tax on waste incineration, which from January will have a rate of NOK 238 per tonne of CO₂. Since the basic tax on mineral oil is discontinued, a new rate will be introduced for quota-obligated use of mineral oil. An exemption will be introduced in the CO2 tax on mineral products for use where the emissions are captured and stored permanently. New rules for petroleum tax. The exempt income rate will be reduced from 17.69 per cent to 12.4 per cent. New taxes in the power industry The basic interest tax on hydroelectric power will from New Year be based on the actual income of the power producer through the fixed price agreement, and not the spot market price. This is to better facilitate fixed price agreements for electricity. An amendment to the law has been passed which stipulates that grid companies must pay property tax on the land under power lines, and not the landowners. The effective basic interest tax rate on hydropower will be increased from 37 per cent to 45 per cent. Guarantees of origin must form part of the basis for ground rent tax on hydropower. From 1 January, the tax on land-based wind power will increase to 2 øre/kwh. From 28 September 2022, a high price subsidy has been introduced for large hydropower plants. From the new year, the high price subsidy also applies to other hydropower plants and wind power plants. Other changes Changes to the lending regulations come into force on 1 January 2023. The changes mean that the financial company must assume an interest rate increase of at least 3 percentage points when assessing the customer’s ability to pay. New late payment interest. The interest rate shall be 10.75 per cent, in line with the EU’s directive on delayed payment. The Ministry of Finance has also determined a compensation for recovery costs (standard compensation). This is set at NOK 410. New deduction rate for BSU. The deduction rate for Boligsparing for ungdom (BSU) will be reduced from 20 per cent to 10 per cent of the paid-in savings amount. New Goods Transport Act and Customs Duty Act. From 1 January, persons resident in Norway can bring 100 cigarettes, 125 grams of other tobacco products (for example snuff or rolling tobacco) or 100 grams of other nicotine products and 100 cigarette papers, tax-free as luggage when arriving in Norway from abroad. New deduction for living in Troms or Finnmark. The separate deduction for Troms and Finnmark (measure zone) will be increased from NOK 20,000 to NOK 20,550. It has been decided to legislate a practice that allows certain subsidies and compensations in agriculture that are paid out as a lump sum, to be distributed for taxation over several years or deferred to a later year. The rules for voluntary contributory pension schemes for freelancers and self-employed people are being changed so that access to tax-favored savings is given from the first kroner. New deduction for trade union dues. The deduction for the membership fee will be increased from NOK 5,800 to NOK 7,700. Commuters who live in barracks or boarding houses are entitled to a deduction for additional costs for food, regardless of whether there is cooking facilities. The special rule on taxation of wage income during work stays abroad (the one-year rule) is being changed. The number of permitted days of stay in Norway must be calculated within each income year.
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These are the tax and duty changes that take effect on 1 January 2023 – news Vestland
